'Millennial' views about housing market based off 'inflated expectations' | Sky News Australia

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Former chief economist to the prime minister Dr Andrew Stone says 'inflated expectations' are 'colouring people's views' about how difficult the current housing market is.

Former chief economist to the prime minister Dr Andrew Stone says "inflated expectations" are "colouring people's views" about how difficult the current housing market is.

"Over the last three and a half decades, Australia has had three major run-ups in house prices, two of which were driven by deep structural forces in the economy - in particular, the taming of inflation from high variable rates to a steady 2.5 per cent," he said. Dr Stone expressed "some sympathy for young people" because he theorises the most recent price hike - which has not necessarily been driven by those same structural forces - is largely being driven by immigration.

 

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You stone cold cookers. We’re going to introduce rent control.

Start small and build your way up. Save money and invest wisely

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'Millennial' views about housing market based off 'inflated expectations' | Sky News AustraliaFormer chief economist to the prime minister Dr Andrew Stone says 'inflated expectations' are 'colouring people's views' about how difficult the current housing market is.\n\n'Over the last three and a half decades, Australia has had three major run-ups in house prices, two of which were driven by deep structural forces in the economy - in particular, the taming of inflation from high variable rates to a steady 2.5 per cent,' he said.\n\nDr Stone expressed 'some sympathy for young people' because he theorises the most recent price hike - which has not necessarily been driven by those same structural forces - is largely being driven by immigration.\n\nImage: Getty Our parents were able to buy a 3 or 4 bedroom home on a 1/4 acre block, on one salary, close to the city. At best we can buy a one bedroom apartment with no yard, in a faulty complex with a 45 minute commute if we're lucky expectations I highly doubt that.. when I was a highschooler, my teachers told us to give up any hope of buying a home, and this was in the Suburbs (not city). Subsequently, it's not been on my radar. I'd rather be realistic then get into debt, or damage my families equity/assets. if this is a real possibility for a growing number of people, it needs to be taken into consideration ideally in advance.
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